Loan Origination Fees

Loan origination fees are charges that lenders impose to cover the costs of processing and evaluating a new loan application. These fees typically include administrative expenses related to verifying your financial information, conducting credit checks, and preparing loan documents. Usually expressed as a percentage of the total loan amount, they are paid upfront or rolled into the loan itself. These fees compensate the lender for their effort in setting up the loan, and they are a common part of the borrowing process in mortgages, personal loans, and other types of credit.